AGA Exam CGFM Topic 2 Question 37 Discussion

Actual exam question for AGA's CGFM exam

Question #: 37
Topic #: 2

[All CGFM Questions]

When considering materiality during the planning phase for the field work for a financial audit, the dollar threshold for materiality is determined by the

Aauditor.

Bauditee.

Cauditor in consultation with the auditee.

Daudit committee.

Show Suggested Answer

Suggested Answer: D

by Lucy at Dec 14, 2023, 02:46 PM

Limited Time Offer

25%

Off

Get Premium CGFM Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Aide

2 months ago

Wait, is the auditor supposed to just roll a dice to determine the materiality threshold? Seems like a risky move to me.

upvoted 0 times

Margo

9 days ago

D) audit committee.

upvoted 0 times

...

Stephania

15 days ago

C) auditor in consultation with the auditee.

upvoted 0 times

...

Sharita

17 days ago

A) auditor.

upvoted 0 times

...

Gail

2 months ago

C'mon, it's gotta be the auditor in consultation with the auditee. They need to work together on this, don't they?

upvoted 0 times

...

Chandra

2 months ago

Ooh, I bet the audit committee has the final say on this. They're the ones keeping an eye on the whole process.

upvoted 0 times

Earlean

6 days ago

It's important for the auditor to consult with the audit committee on materiality.

upvoted 0 times

...

Lanie

14 days ago

Yeah, they probably have the final say on the dollar threshold.

upvoted 0 times

...

Selma

16 days ago

I think the audit committee plays a big role in determining materiality.

upvoted 0 times

...

Blair

2 months ago

Hmm, I'm not sure about that. Shouldn't the auditee have a say in this? They know their business best, right?

upvoted 0 times

Tamala

1 hours ago

C) auditor in consultation with the auditee.

upvoted 0 times

...

Magda

2 months ago

A) auditor.

upvoted 0 times

...

Goldie

2 months ago

I think the auditor should determine the materiality threshold based on their professional judgment. After all, they're the experts in this field.

upvoted 0 times

Virgie

25 days ago

Yes, the auditor plays a crucial role in setting the materiality threshold for the financial audit.

upvoted 0 times

...

Thurman

29 days ago

I agree, the auditor is the one with the expertise to determine the materiality threshold.

upvoted 0 times

...

Dino

1 months ago

Yes, it makes sense for the auditor to use their professional judgment in setting the materiality threshold.

upvoted 0 times

...

Catrice

2 months ago

I agree, the auditor is the one with the expertise to determine the materiality threshold.

upvoted 0 times

...

Miriam

2 months ago

Actually, the auditor determines materiality in consultation with the auditee to ensure accuracy.

upvoted 0 times

...

Queen

2 months ago

I agree with Latanya, the auditor is responsible for determining materiality.

upvoted 0 times

...

Latanya

3 months ago

I think the dollar threshold for materiality is determined by the auditor.

upvoted 0 times

...